automatic insurance renewals

zukibear

Are insurance companies allowed to keep my credit card details so policies can be automatically renewed after 12months?
I paid for my partners insurance on my credit card last year - but dont want to this year.

dogbot

Yes of course, automatic renewal is in most household contracts and an increasingly large number of motor policies.

For buildings it is helpful, since it stops you being without cover.

Just make sure your partner writes to them to say that they do not want to renew with them. Also phone. You are not bound to renew, it just does it unless you state otherwise. They must still send a renewal notice detailing premium, changes in cover etc as required by the FSA.

missile

In some cases it can be very desirable. You are on your dream 1 month holiday. Crash the car on the way home then find the renewal notice(s) arrived day you left and your house has been burgled.

Just reject the renewal notice when it arrives, or write to tell them NO renewal.

If you pay by debit card rather than CC, you can simply delete the authorisation via on-line banking.

junkanoo

If the insurance has been automatically renewed how easy is it to cancel?

Quentin

It's easy to cancel. Write to your insurer saying you want to cancel the policy and return the insurance certificate. To be on the safe side send this recorded delivery.

Expect a cancellation charge to be deducted from any refund due.

zukibear

Thank you, he's being pigheaded saying the shouldnt be able to do that, therefore didnt tell them so they have taken the money from my credit card - without my authorisation.

junkanoo

Quentin wrote: »

It's easy to cancel. Write to your insurer saying you want to cancel the policy and return the insurance certificate. To be on the safe side send this recorded delivery.

Expect a cancellation charge to be deducted from any refund due.

Thanks for the reply.

My policy doesn't expire until 11:59pm on Monday, will there still be a cancellation charge if i cancel before the policy has actually started?

lisyloo

Thank you, he's being pigheaded saying the shouldnt be able to do that, therefore didnt tell them so they have taken the money from my credit card - without my authorisation.

Sorry but you are both wrong.
He agreed to a policy that automically renewed and you signed up to a continuous card authority, so you did give them authority.
Sorry but the lesson is - read the small print (and don't be pigheaded about things - him not you obviously).

lisyloo

My policy doesn't expire until 11:59pm on Monday, will there still be a cancellation charge if i cancel before the policy has actually started?

There shouldn't be a charge if the policy hasn't started but get onto it ASAP as they may not be open at the weekend.
Ask for a written acknowledgement.
Note down the time, date and full name of the person you speak to.

I've just cancelled with Lloyds TSB and they were excellent but some firms will lose your instructions so you need to pro-active to prevent hassle.

Quentin

junkanoo wrote: »

My policy doesn't expire until 11:59pm on Monday, will there still be a cancellation charge if i cancel before the policy has actually started?

There shouldn't be as long as you get the certificate back to them by Monday.

In the circs you may want to use special delivery to ensure it's in their hands before the policy comes into force, so that there are no arguments that you have had any cover.

BenL

Yeah you should still be able to decline the renewal invitation before the policy renews on Monday.

They might not have produced the certificate yet incase the payment on the card gets declined when they attempt the renew.

Make sure they understand you want to decline next years policy and not cancel this years. The policy should then just lapse and your new policy will take over.